Management Board

The compensation of Management Board members is approved by the Supervisory Board, based on the Compensation Committee's recommendation.

The fixed annual compensation of the Chairman of the Management Board (€500,000), which had not changed since he was appointed in May 2000, was adjusted to €600,000 effective January 1^st, 2008.

The variable component of his pay is determined on the basis of a predefined target amount (€2,700,000 in 2008) and includes two components:

• Group performance, as measured by underlying earnings per share, P&C revenues, new business value in Life & Savings and customer scope index,
• Individual performance, which is evaluated by the Compensation Committee on the basis of specific strategic objectives set at the beginning of the year.

For other members of the Management Board, the variable compensation is also determined on the basis of an individually predefined target amount and includes three factors:

• Group performance, as measured by underlying earnings per share, P&C revenues, new business value in Life & Savings and customer scope index,
• Performance of the business unit or functional area of responsibility, measured against objectives set at the beginning of the year,
• Their Individual performance, evaluated on the basis of predetermined strategic objectives.

The variable component of pay of the other members of the Executive Committee is also determined based on a predefined individual target amount and depends on Group performance, the performance of their business unit or area of responsibility and their individual performance.